Falling gas prices ease pain at pump

October 26, 2012|By Michael Jones, Staff Writer

GAYLORD — Although a number of people in Gaylord asked by the Herald Times Thursday said they believe the recent drop in the price of gas at the pumps is related to the upcoming presidential election, Mark Griffin, president of the Michigan Petroleum Association, disagrees.

“What we’re seeing is historically this time of year is that costs go down,” Griffin said.

Since last weekend, the price of regular gas in Gaylord dropped 30 cents a gallon — from $3.89 to $3.59 Thursday.

Griffin said the state average was $3.37 a gallon Friday, with some stations in the Lansing area selling gas for as low as $3.11.

“I have no idea how low it’s going to go,” he said. “We’re excited the cost has come down. What I would like to ask is, where are the so-called experts who last spring were predicting $5 a gallon gas for this summer?”

He added that he absolutely does not believe their is a connection between the lower prices and the election.

“I’m fascinated by people who think it’s a conspiracy on the part of the government or president that the price of gas has been dropping to somehow influence the election,” said Griffin, chuckling at the idea. “I think those are the same people who believe black helicopters are following them around.

“Supply and demand is the big factor,” he added. “Reserves have grown, and right now demand has been going down. More people are driving in the summer, creating demand, causing prices to stay high. Now people are traveling less and the demand for refined products is decreasing. That’s an historical trend and one that people, over the past five or six years, are starting to understand.”

Although seasonal trends play a role in the rise and fall of gas prices, Griffin acknowledged unforeseen events, such as supply disruptions, whether natural or worldwide political events, can result in spikes in the price of gas.

“We haven’t had a natural disruption (recently) like a tropical storm to cause prices to go up,” Griffin said. “Polices or decisions the United States might make in the Middle East can impact the supply of oil worldwide and cause gas prices to jump. But one person being responsible? I don’t think so. It’s coincidental that this (lower prices) happens at this time of year when the elections are happening.”

Whatever the reason for the recent plunge in the price of filling up at the pumps, Griffin said he is pleased.

“It helps drive demand and gets people out buying gas, which results in people spending more inside the convenience stores when they fill up,” he said. “And that’s where most of our retailers make their money.”